Apple has made the momentous decision to move its entire retirement plan to exchange traded funds (ETFs), according to Employee Benefit News. ETFs are investment funds which track (in value) a particular index (e.g., S&P 500, Wikipedia) They are characterized by low fees and high liquidity. They have established a favorable track record compared to mutual [...]
Early Distributions Under Section 72(t)
April 24, 2012 By
Many people do not realize that they can begin taking distributions from their IRAs and qualified employer plan accounts without being subject to the 10% penalty on early withdrawals, even if they are younger than 59 ½ . Several exceptions exist to the rule against taking early distributions, but perhaps the most complicated and least [...]
Contribution Limits for 2012
March 18, 2012 By
Plan Asset Rule Follies
August 17, 2011 By
In our practice, we occasionally see transactions structured by other financial planners attempting to circumnavigate the Prohibited Transaction Rules found in Internal Review Code sec. 4975, by using the thresholds found in the “Plan Asset Rule.” Dept. of Labor Regs. Sec. 2510.3-101. As is typical with most prohibited transactions, these arrangements often involve the IRA [...]
Example of an Expedited Exemption of a Prohibited Transaction
June 14, 2011 By
Pundeff Adams represents investors in applying for prohibited transaction exemptions. The following are verbatim excerpts from a tentative authorization by the Employee Benefits Security Administration of a prohibited transaction (published on the EBSA website), in which an IRA was allowed to sell property to the IRA owner:
